Trump Wins: G-20 Drops 'Anti-Protectionist, Free-Trade, & Climate-Change Funding' Pledge

Tyler Durden's picture

After delays and hours of discussions amid tensions over 'trade' comments between the United States and the rest of The G-20, it appears President Trump has 'won'. While China was "adamantly against" protectionism, the finance ministers end talks without renewing their long-standing commitment to free trade and rejection of protectionism after US opposition.

The world's financial leaders are unlikely to endorse free trade and reject protectionism in their communique on Saturday because they have been unable to find a wording that would suit a more protectionist United States, G20 officials said.

This would break with a decade-old tradition among the finance ministers and central bankers of the world's 20 top economies (G20), who over the years have repeatedly rejected protectionism and endorsed free trade.

But the new administration in the United States is considering trade measures to curb imports with a border tax and would not agree to repeat the formulations used by previous G20 communiques, clashing with China and Europe, the officials said.

"Unless there is a last minute miracle, there is no agreement on trade," one official, who declined to be named, told Reuters.  "This is not a good outcome of the meeting," a G20 delegate quoted Bundesbank President Jens Weidmann as saying.

In a partial face-saving move, as The FT details, G20 finance ministers meeting in the German resort town of Baden-Baden noted the importance of trade to the global economy, but dropped tougher language from last year that vowed to “resist all forms of protectionism”.

The new communique said: “We are working to strengthen the contribution of trade to our economies. We will strive to reduce excessive global imbalances, promote greater inclusiveness and fairness and reduce inequality in our pursuit of economic growth.”

 

The watered-down commitments on free trade reflected the anti-globalisation mood that Donald Trump has brought to Washington and came in the first G20 meetings between Steven Mnuchin, the new US Treasury Secretary, and his foreign counterparts.

US Treasury Secretary Mnuchin spoke to reporters after the meeting:

  • *MNUCHIN: LOOKING FORWARD TO WORKING CLOSELY W/ G-20 COLLEAGUES
  • *MNUCHIN: CONFIDENT U.S. CAN WORK CONSTRUCTIVELY WITH PARTNERS
  • *MNUCHIN: U.S. BELIEVES IN FREE, BALANCED TRADE
  • *MNUCHIN SAYS WILL LOOK AT TRADE SURPLUSES WITH VIEW TO CORRECT
  • *MNUCHIN SAYS MULTILATERAL AGREEMENTS HAVE VERY IMPORTANT PLACE
  • *MNUCHIN SAYS U.S. WANTS TO RE-EXAMINE TRADE DEALS INCL. NAFTA
  • *MNUCHIN: U.S. BELIEVES IN APPROPRIATE REGULATION
  • *MNUCHIN SAYS IMPORTANT BANKS CAN PROVIDE LIQUIDITY IN MARKETS

Reuters also points out another potential win for Trump as the communique will also drop a reference, used by the G20 last year, on the readiness to finance climate change as agreed in Paris in 2015 because of opposition from the United States and Saudi Arabia.

Trump has called global warming a "hoax" concocted by China to hurt U.S. industry and vowed to scrap the Paris climate accord aimed at curbing greenhouse gas emissions.

 

Trump's administration on Thursday proposed a 31 percent cut to the Environmental Protection Agency's budget as the White House seeks to eliminate climate change programs and trim initiatives to protect air and water quality.

 

Asked about climate change funding, Mick Mulvaney, Trump's budget director, said on Thursday, "We consider that to be a waste of money."

The G20 do agree, however, to show continuity in their foreign exchange policies, using phrases from the past on foreign exchange markets.

As we noted earlier, needless to say, such an acrimonous end to the weekend's summit would likely result in a surge in FX volatility when markets open for trading late on Sunday, reflecting the new state of global trade flux, in which the future of the US Dollar is completely unknown, and reflecting the emerging chaos over the future parameters of trade.
 

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Chris88's picture

We don't need any, that's my point, but we also don't need the leftist drivel known as mercantilism to prop up companies or industries that the market would otherwise permit to fail.  Mommy government shouldn't be telling companies who they can hire, where they can produce, and who they can trade with.

TheLastTrump's picture

88 = Heil Hitler = "that appeals to the dumbest people of society."

Chris88's picture

Hey look it's the tool that named himself after leftist Donny.  How's the wheelbarrow pushing going?

TwelveOhOne's picture

Or it's a better way to tax people, because they can choose what luxury items they want to purchase.  Also income isn't all that comes in, but you won't learn that in school or from IRS publications.

Chris88's picture

I don't think they should be taxed at all, but specifically trying to punish companies for not following some national directive distorts markets significantly.  Yeah, I must have not learned that through years of doing M&A and advisory and putting companies together and now analyzing and valuing them for a living.  Tell me more about school.

Lucky Leprachaun's picture

"This is not a good outcome of the meeting"  -  Bundesbank President Jens Weidmann

If that globalist PoS thinks it's bad then it's good.

Farmer Joe in Brooklyn's picture

When do trade wars become hot wars....?

TheLastTrump's picture

We've been a whisker away from war with China & Russia for at least the last 2 years. It's been building since the 2005 time frame and Obama's machinations in Ukraine & Syria have brought us to this fine point Ollie.

 

Now it's up to the adults in the room to defuse the situation through prosperity & strength. I'm glad a pragmatist like President Trump is in charge. If it were Hilary based on her anti Russian spew I think we would be clashing somewhere already.

 

Who the fuck are these people that think it's OK to interfere with other countries elections, then cry about having their own disrupted? WTF kind of sense does any of this make.

 

Israel, Ukraine & Syria should bring charges against Obama for attempting to overthrow their governments. Sessions should go after the same for using tax payer dollars to do it.

shovelhead's picture

Because they need Democracy and they're gonna get it good and hard.

Beans's picture

Obamanation machines nothing, ok. This is all the work of the Ziocons and the Ziocons only. He's been nothing but a shabbat goy doing their dirty work all that time.

RightLineBacker's picture

Amen!

The truth will set us free.

One World Mafia's picture

Trump has drone striked Yeman and sold weapons to the Saudis to use against Yeman while backing the insalled puppet regime.  Under Trump we also recently witnessed an escalation in Syria with US ground troops and armoured vehicles.  Assad reacted by making it abundantly clear they are invaders.

otschelnik's picture

Yes! Yes!  This is YYuuge!  Time to stop subsidizing europe, and yes human caused climate cange is a hoax.  

quesnay's picture

If Saudi Arabia doesn't want to fight combat change (130F is not unusual), then who the hell are we to complain about a possible 2F temperature change! ;-)

ZeroBeek's picture

Free trade used to be a capitalist thing.

Trump ended capitalism.

TheLastTrump's picture

We don't have free trade but then you already know that.

William Dorritt's picture

Global Govt is right off of the Socialist Int web site, not capitalism at all.

sheikurbootie's picture

Trump and America bow to no one.

Death before dishonor

Avichi's picture

GO USA ! Fuck the GLOBALIST ELITES, WORLD TRADE ORGANIZATION AND IMF. STOP FUNDING IMF.

William Dorritt's picture

Gorn Translator......

Free Trade = The world Gang Raping the American Middle Class

 

Climate Change = Shutting Down US Electricity Production doubling prices and driving factories to China.

 

http://static4.wikia.nocookie.net/__cb20120325181149/memoryalpha/en/imag...

TheFederalistPapers's picture

The Magic Negro escaped to the South Pacific to escape the news of the continued winning streak.  Fuck him.

William Dorritt's picture

Lets wait and see if he is escaping Investigation and Indictment

IranContra's picture

Congratulations, Mr President.

Beans's picture

I'm confused?? Is this a vindication or a rejection of the ZWO?

Pasadena Phil's picture

"...ministers end talks without renewing their long-standing commitment to free trade and rejection of protectionism..."

Talk about recasting the truth with a brazen lie. What Trump just accomplished was the partial repeal of a very bad trade deal that was designed to rape America. It was not even close to being "free trade" And what Trump is doing is not "protectionism" unless you believe allowing one country to be raped without a right to recourse is free trade.

How is any trade deal "free trade" anyway? All Trump is doing is replacing rapacious rules with new rules that allow the US to export into the rest of the world without being taxed, dutied, levied and otherwise unfairly disadvantaged in countries who are allowed to export into the US untaxed? How is that "protectionism"? You libertarians are as dishonest as the globalists.

Trade deals exist for a good reason. Because EVERYONE CHEATS!!!! Good deals are FAIR deals. "Free trade" isn't defined by the absence of rules anymore than football is. No, rules define the game! Now let's move on to the part where we replace bad rules with good rules. If you libertarians want to call it "protectionism", then add that to the long list of why you can't get your candidates elected.

Pasadena Phil's picture

Here's another example for why unfettered  "free" trade without rules, or at least without enforcement of the rules, is never "fair" trade:

http://oilprice.com/Energy/Energy-General/State-Owned-Enterprises-Take-M...

Look at how the international shipping industries are hopelessly chaotic from being dominated by state-owned enterprises (Greece e.g.).

We can't run a thriving civilization on "free markets" alone. Only free nations can operate a free civilization. And so, only free nations with free economies should be allowed to participate in these trade deals. It is not fair for free people to be forced to compete against what essentially amounts to slave economies. Free people need to be PROTECTED from the slavers. That's not protectionism. It's common sense.

amadeus39's picture

Who are you talking about. Last I looked the USA was one of least "free" economies in the world.

 

shovelhead's picture

You're confused.

No libertarian of any stripe will disagree about fairness. When "free" trade is a one way street it's not "fair" trade. The cornerstone of Libertarian action is non-coercive agreements where both parties benefit on a level playing field.

There may be many other points of disagreement, but that isn't one of them.

artvandalai's picture

By now in his new term Obama had been apologizing to everybody in that room. They all knew they had a wimp on their hand that would be looking to making it up to them. And he was easily taken advantage of.

MuffDiver69's picture

Yes. Obama was an embarrassment and the World loved him for it.

labillyboy's picture

Obama was the kid who had his lunch money stolen every day... The G20 bullies aren't getting Trump's.

nashville2's picture

another bad climax for bendover barry

Dog Will Hunt's picture

If he can only implement this policy here at home, you hillbillies can spend your extra tax dollars on cheap cigarettes, alcohol, and peroxide to cover your knuckles in after you beat the shit out of your wives.

MuffDiver69's picture

Did you miss your cupcake rally or perhaps you ran out of diaper pins this morning sweetie...

William Dorritt's picture

Do you get double pay for Trolling on ZH instead of The Hill ??

shovelhead's picture

From the foaming at the mouth, I'd go with the Daily Koz.

They're delightfully delirious like this clown with their lack of argument and live on poo flinging from their monkeyhouse.

Too bad Soros only pays 6 cents a post for general trash talk. He's not ready to run with the big dogs yet.

MapleLeif's picture

The fundamental premise of liberalism is the moral incapacity of the American people.

shovelhead's picture

You're right.

We need to burn down more neighborhoods.

amadeus39's picture

Incapacity? We got tons of "moral capacity."  But we're somewhat selective in it use. Got to belong to certain tribes.

 

soozie's picture

Actually we're clinging to our guns and Bibles, two for sure things in this life, and one in the next.

cherry picker's picture

I fail to see the relationship between JC and guns.

One is a murder tool.  JC was and the 10 commandments were pretty clear about not murdering.

shovelhead's picture

Turning the other cheek is an ideal, not a practical application.

Perfection is an elusive target so firearm practice is essential.

amadeus39's picture

What are you waiting for? Why put up with shit sandwiches when milk and honey is waiting. Or is your belief only skin deep? 

 

A Dollar Short's picture

All this winning has turrned the California Snowflake tears to river's of water and the drought is now Officially over!

GO TRUMP!

RealityCheque's picture

We also have a global salt surplus thanks to those liberal tears!

Feel it Reel it's picture

Climate Change, Global Warming, Polar Vortex are all words made up by corrupt politicians to fleece the taxpayer under the guise of protecting the enviroment...It's total Money Laundering......To enrich the Elites and Politicians....

shovelhead's picture

Buy magnets and stop the polar reversal.

Zero-Hegemon's picture

"China is against any talk of protectionism when initiated by any other country but China."

There, fixed it for yas

amadeus39's picture

China's only doing for its citizens what Trump wants to do for us. Only thing is China has been more successful than us...so far. If I were  Chinese I would support a government that supports its citizens.

 

 

Zero-Hegemon's picture

Stop, you're being rational